Jinhe Biotechnology(SZ:002688) China Post Securities·2025-04-30 08:23Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company, Jinhe Biological, reported a revenue of 2.371 billion yuan for 2024, representing a year-on-year growth of 9.04%, with a net profit attributable to shareholders of 100 million yuan, up 15.90% year-on-year. Excluding stock incentive expenses and goodwill impairment, the net profit was 157 million yuan, a significant increase of 57.59% year-on-year [4] - The veterinary pharmaceutical segment saw a revenue increase of 21.74% to 1.234 billion yuan in 2024, with a gross margin improvement of 7.4 percentage points to 40.17%. The sales volume of veterinary drugs increased by 21% in 2024 and 55.55% in Q1 2025, driven by new production capacity and increased application scenarios [5][6] - The company is the largest producer of chlortetracycline premix in the world, with a projected EPS of 0.30 yuan for 2025, corresponding to a PE ratio of only 21 times, indicating a favorable valuation [7] Company Overview - The latest closing price of the company's stock is 6.20 yuan, with a total market capitalization of 4.8 billion yuan and a circulating market capitalization of 4.6 billion yuan. The company has a total share capital of 772 million shares, with 745 million shares in circulation [3] - The company has a debt-to-asset ratio of 55.8% and a current PE ratio of 47.91 [3] Financial Performance - For 2025, the company expects a revenue of 2.726 billion yuan, representing a growth rate of 15%, and a net profit of 229 million yuan, with a growth rate of 128.52% [10] - The EBITDA for 2025 is projected to be 626.14 million yuan, with a significant increase in profitability metrics such as net profit margin and return on equity [13]